Alert Message

Why Preston is another word for home

Preston may be small but it's growing very strong economically with median household income up almost $10,000 from 2000. Home values are dramatically rising as well, with an increase of over $80,000 since 2000. Preston is only 60 miles from Baltimore if you do desire some big city living at a moment's notice. It's a great place to bring or start a family as well. Over 70 percent of homes belong to families; Preston is a safe town with a family focus.

Are you ready for this family-oriented town?

Find the home where you almost forgot to look!

Preston is only a short drive away from the metro area of Baltimore, which gives you the convenience of family living without too many distractions while still allowing you to experience the big city when you desire. There are plenty of schools for you to choose from with 18 public schools, in addition to private schools as well. There is no time to waste on long commute times in Preston; the majority of residents enjoy a commute time of 12 minutes. There are just over ten restaurants which is enough for a variety but not enough for you to argue over what's for dinner. If you want something special or different you can always head off to Baltimore or another nearby city for the day or night.

Preston is located in between family and comfort

Comfort blended with luxury and affordability!

With steadily declining numbers for unemployment and a consistently growing economy, Preston is a great place to pick your next home, whether it's just you, a family, or with plans to start a family. There are so many options in terms of homes in Preston; according to Trulia there are homes ranging from $100,000 to $700,000 depending on what you're looking for. Luxury and comfort are both available in Preston and it's well within driving distance of more major cities without having to pay the cost to live in those cities. As long as you have reliable transportation, you'll have a great time in Preston. One of its major appeals is that it is such a nice and beautiful small town but according to Walkscore, it is definitely a car-dependent town.

Common Questions About Buying a Home in Preston

All The Answers You Need to Settle Down Sooner

Should I choose a fixed or adjustable rate?

It depends how long you expect to stay in the home. Adjustable rates are good for people who may not be in the home long, whereas fixed rates are ideal for people who are confident of settling in.

Do I need a home appraisal?

Probably—in most cases, the homebuyer must use an appraiser to evaluate the value of the home. Appraisal costs vary depending on the value of the property, as well as the state the house is in. Buyers cannot choose their own appraiser—the bank makes the decision.

What is PMI?

Private mortgage insurance (PMI) is required when a homebuyer makes a down payment of less than 20%, or when a borrower refinances with less than 20% equity in the home. PMI fees vary according to your down payment and credit score, and adds a premium to your monthly mortgage payment. Please note, PMI is tax-deductible in 2015 and 2016 for certain income brackets.

What does Loan-to-Value mean?

Loan-to-Value (LTV) is the percentage of your home’s value that your loan represents. When refinancing, the calculation is simply the loan amount divided by the appraised value. When buying a home, the LTV is found by dividing by either the purchase price or appraised amount, whichever is lower. When the LTV is less than 80%, the lender generally requires PMI.

For example:

Purchase price: $100,000
Down payment: $15,000
Loan amount: $85,000
Appraised value: $110,000
LTV: $85,000/$100,000 = 85%

What are closing costs?

Closing costs are standard fees associated with a real estate transaction. You will typically pay about 2-5% of the purchase price in closing costs—the exact amount depends on where you are buying (or refinancing), as well as number of extra fees involved in your particular transaction. Earnest charges no lender fees, so the borrower is only responsible for 3rd-party fees.

What should I consider before refinancing my mortgage?

Refinancing your home loan is an attractive option when rates are low. A simple rate and term refinance can help you lower your monthly payment and potentially eliminate your PMI premium, as long as you have built up enough equity in the home. You might also use a cash-out refinance to access some of the equity you’ve built up in the home (which may result in a higher monthly payment on your new loan).

However, keep in mind that refinancing a mortgage does involve several fees (closing costs). Before refinancing, you should calculate the ‘break-even’ point at which your refinanced loan makes up for the closing costs. If you plan to leave your home before this time, it’s better to stay with your current mortgage.

Knowledge Is (Buying) Power

Further Resources from the Earnest Blog

People around a computer

The intelligent home loan

When it comes to finding the right home loan, Earnest works hard to ensure that the process pain-free. We use an industry-leading and intuitive online-only application (meaning most times no scanner or fax machine required), a 5-star client service team, and a unique rolling pre-approval that stays current while you track down that perfect home. At Earnest, the home loan process is like no other.